KOLKATA: Samsung India has merged two of its three verticals of consumer electronics business and changed business heads in an unusual midyear reshuffle ahead of the crucial festive season, four senior industry and trade executives said.

The country's largest cell phone maker has merged the vertical that managed its own brand stores with retail sales that dealt with independent dealers and distributors. The regional retail vertical, which caters to large regional chains such as Viveks, Adishwar Retail, Great Eastern and Vijay Sales, will continue as it is, they said.

The combined portfolio of brand shops and retail sales is being headed by Alok Pathak, who was earlier heading the regional retail vertical.

Rajeev Bhutani, who used to head retail sales, has become vice-president for business strategy. Rakesh Moza now heads the regional vertical, apart from his earlier role of heading modern retail that includes chains like Croma and Reliance Digital.

All these changes have been made in the last one month, the four sources said. An email sent to Samsung India spokesperson did not elicit any response as of press time on Tuesday.

The management rejig has been driven by Samsung India Electronics president and chief executive offier Hyun Chil Hong who wants to ensure that the consumer electronics business is not neglected due to excessive focus on the firm's smartphone business in India.

Mobile phones contributed 70 per cent to Samsung India's Rs 40,392 crore revenues in 2013-14. The company has not yet disclosed the 2014-15 numbers. A top industry executive, who requested anonymity, said Hong — who in his last role was the president of Samsung's Latin America operations for three years — is evaluating possibilities of further restructuring the consumer electronics business if the current structure does not deliver result.

The company may then adopt the business structure it follows in the cell phone business where the business is divided as per geography, referred to as India One and India Two within Samsung, the person said. While Samsung may still be the market leader in flat panel television, Sony has bridged the gap by launching smaller screen sizes specifically for India. LG remains the largest home appliances maker.

A top executive with a rival firm said Samsung's white goods business is under pressure this year since consumers have cut back on spending while the Korean firm is more focused on the premium segment. "The company is trying to upgrade sales by launching high-end products with attractive consumer finance schemes and promotions, but consumer sentiments are still down and the company's margins are under pressure," the person said.